CBI books ASI, MCL officer over illegal coal money racket in Odisha

BHUBANESWAR: The CBI has booked an ASI posted at its Bhubaneswar Anti-Corruption Branch (ACB) and an officer of Mahanadi Coalfields Ltd (MCL) in Odisha’s Sundargarh district for allegedly running an illegal money collection racket involving coal transporters. According to an FIR registered on January 28, ASI Prashanta Kumar Pallei allegedly operated a criminal nexus with Sarada Prasad Sethy, a dispatch officer at MCL’s Garjanbahal opencast project in the Basundhara area. The two are accused of illegally collecting money from coal transporters and lifters. While Sethy allegedly abused his official position to collect bribes, Pallei is accused of providing protection and other favours to ensure the racket continued. CBI sources said Sethy routinely collected money from transporters by offering illegal benefits, including dispatching excess coal or supplying higher-grade coal while billing it as a lower grade. In return, transporters allegedly made regular payments. The FIR also alleges that Sethy secured and retained his posting at Garjanbahal with Pallei’s assistance. As per the case, Pallei allegedly received regular payoffs from Sethy in exchange for shielding him from enforcement action and extending favours such as ensuring a “favourable posting”, intimidating rivals, and facilitating the allotment of a company quarter. The FIR further alleges that Pallei threatened a senior MCL official to secure Sethy’s posting. Investigators have cited several alleged transactions and conversations between the two during June and September last year. On June 13, 2025, Pallei allegedly demanded Rs1 lakh from Sethy and asked that the amount be transferred to his son’s bank account. Days later, he allegedly sought the son’s PAN details and suggested “finding faults” with the Mahalaxmi Area general manager to “set things right”, assuring Sethy he would personally resolve issues, including quarter allotment. The FIR further claims that on July 16, 2025, Pallei asked Sethy to identify “big contractors” and mentioned arranging a staff member to assist a CBI DSP in Bhubaneswar, with the salary to be paid by a private firm. Acting on this, Sethy allegedly arranged a man on a Rs25,000-per-month payment. On July 17, Rs 1 lakh was credited to Pallei’s SBI account from a coal transporter, with Rs70,000 transferred the same day to the ASI’s wife, the FIR states. Pallei is also accused of seeking confidential tender-related information from an MCL official handling guest houses, including “secret” catering bid details, allegedly warning the officer of consequences for non-compliance. The FIR further alleges that on August 22, while on duty in a trap case, Pallei directed the brother of an arrested accused to contact a particular advocate. In early September, after Sethy complained that his general manager had reprimanded him during a video conference over allegations of favouring ruling party leaders in coal transport, Pallei allegedly assured him that the GM “cannot remove” him and could be “called to Bhubaneswar”. The two later met in Rourkela on September 12. The CBI has alleged that Pallei had earlier received “protection money” both in cash and through bank transfers to accounts of his family members and other associates.